The adage “let your winners run” has held true for many of today’s highly successful investors. Much like heeding the smells wafting from Grandma’s kitchen, this time-honored advice advocates enjoying the sweet smell of success without interference. Enter the world of hypergrowth stocks – those rare securities representing companies shattering industry norms, showing rapidly increasing earnings, and propelling profits at an exponential rate. As the stock market reaches record highs, it’s time to look at three hypergrowth stocks that have the potential to deliver long-term wealth for investors.

Netflix (NFLX): Riding the Streaming Wave

At the forefront of the streaming industry, Netflix (NASDAQ:NFLX) stands as a dominant and profitable force. The latest data reflects an impressive 12% surge in NFLX stock following robust earnings, with subscription growth fueling this surge. Netflix now boasts a staggering 260.8 million subscribers worldwide, outpacing analysts’ estimates. The company raised its 2024 operating margin forecast to 24% and quarterly earnings estimates to $4.49 a share, further bolstering investor confidence. The announcement of Netflix’s foray into live sports entertainment and effective measures to curb password sharing among users have significantly improved its financial outlook. With a 52% increase in stock value over the last 12 months, Netflix is cementing its position as a prime hypergrowth stock.

ASML (ASML): The Semiconductor Powerhouse

While not as recognizable as other semiconductor companies, ASML (NASDAQ:ASML) stands as one of the most crucial semiconductor equipment manufacturers globally. Its state-of-the-art “extreme ultraviolet lithography” machine plays a pivotal role in producing advanced microchips, fueling a sharp rise in demand. ASML’s staggering 30% increase in full-year sales and robust revenue and profit figures for Q4 2023, which well exceeded Wall Street expectations, have sent ASML stock soaring by 9%. Despite this, there is considerable untapped potential for growth, with a modest 25% increase in stock value over the last 12 months – a fraction of the gains seen in other chipmakers.

Advanced Micro Devices (AMD): The Contender in the Microchip Arena

Following ASML’s stellar Q4 performance, shares of Advanced Micro Devices (NASDAQ:AMD) have surged 6% to reach an all-time high. With a remarkable 140% increase in stock value over the past 12 months, analysts are resolute in their anticipation of continued growth. Eying AMD’s latest range of microchips, including the Ryzen and MI300X accelerator microchips, analysts predict that AMD will make significant inroads against rivals such as Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC). Capable of powering the most advanced AI models and applications, these microchips are expected to propel AMD head-to-head against Nvidia this year. Despite being up 712% in the last five years, AMD boasts immense potential for further growth.

With each of these companies holding the potential to carve out significant market share in their respective industries, they represent substantial investment opportunities. As Warren Buffett succinctly put it, “Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.” Investors would do well to heed this sage advice and consider adding these high-growth stocks to their portfolios.

Joel Baglole is an established business journalist with two decades of experience, including esteemed roles at The Wall Street Journal, The Washington Post, and Toronto Star. His contributions extend across financial platforms such as The Motley Fool and Investopedia.

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